Despite the impact of the COVID-19 on the real estate market, the numbers at Betterhomes for the H1 period showed a positive trend of recovery and a healthy growth compared to the same period in 2019. Although numbers started to drop in the month of April, sales figures have bottomed out in June with an increase of 50% in just a month and achieved even greater results.
Driven by a strong demand June saw a huge spike in sales transactions with a impressive 83% year-on-year growth compared to the same period last year. In the meantime, the number of registered buyers increased by 30% compared to January 2020. Cash buyers accounted for 69% of all transactions, while mortgage buyers stayed at 31%. It is interesting to note that in terms of buyers’ demographics, Indians (13%) were the most active buyers, followed by Italians (10%) and Emiratis (9%).
On the leasing side, the number of tenant registrations grew by 11% year-on-year basis. 4 cheques payment (37%) continued to be the most popular option, followed by 1 cheque (24%) and 2 cheques (23%).
Approximately 14,000 units were delivered in the H1 period with another 44,000 units expected to be completed by the end of the year with a completion rate of 31%. According to data by PropertyMonitor, the highest number of units were handed over in areas such as Town Square (716), Dubai South (612), Business Bay (560), Dubai Sports City (556) and Liwan (550).
The top communities for apartments sales volume were Palm Jumeirah, Downtown Dubai, Dubai Marina, Business Bay and Jumeirah Lakes Towers with average lease prices stood at 146K/year, 106K/year, 94K/year, 87K/year, 74K/year, respectively.
It is worth mentioning that after the lockdown buyer and tenant preferences shifted to more spacious villas and townhouses driven by larger space requirements and softening prices. As for villa communities, Arabian Ranches was traditionally the most popular area with the average rental price of 170K/year. Properties in areas such as Springs, Akoya and Jumeirah Village Triangle were leased at the average rate of 110K/year, 105K/year, 100K/year, respectively. Al Reem remained the most affordable community with the median rent of AED 86K/year.
All in all, despite the pandemic causing global economic turmoil and the slowdown of the economy, the numbers in the H1 showed signs of early recovery and growth. Real estate traditionally being a key pillar of economic growth, continues to contribute to the UAE’s turnaround and acts as a proxy for the country’s overall economic performance. We hope this strong momentum continues to grow post-lockdown.